Going Legal

Discussion in 'Starting a Lawn Care Business' started by kgcs, Dec 13, 2010.

  1. gasracer

    gasracer LawnSite Bronze Member
    Posts: 1,049

    Mine is close to $1,000 a year for everything. People will steal you blind. I have log chains through my big machines on my trailer. I have every piece of equipment related to my business insured even if I only use once a year or every day.
     
  2. Agape

    Agape LawnSite Bronze Member
    Posts: 1,645

    Oh, i'm sure someone will be willing to accept his taxes lol
     
  3. Agape

    Agape LawnSite Bronze Member
    Posts: 1,645

    well in Oregon you can state the value of equipment already owned upon starting the business and write it off. according to my accountant.
     
  4. xclusive

    xclusive LawnSite Bronze Member
    Posts: 1,052

    If you register as an LLC your personal assets are protected when you are sued. Even if you have a million dollar liability policy and some sues you for more than that then you dont have to worry about your personal assets being taken from you. Since you are only 16 I doubt that you have any major assets like a house, but it will also protect your parents assets too.

    If you sell the equipment to the business for $1 and the IRS audits you and finds the equipment is worth more they will charge you interest and penalties on the difference. Its the same thing that happens when you sell a car much cheaper than it value, the buyer usually has to pay additional taxes on the value of the car not the purchase price. The IRS wants any and all money you owe them.
     
  5. kgcs

    kgcs LawnSite Senior Member
    Posts: 306

    How would you recommend selling the equipment to the LLC?
     
  6. Agape

    Agape LawnSite Bronze Member
    Posts: 1,645

    Highest fair market value as you will depreciate these.
     
  7. xclusive

    xclusive LawnSite Bronze Member
    Posts: 1,052

    Sell it to the LLC for the value of the equipment now, not when you first purchased it. If you use quickbooks for books then set up the sale as a fixed asset with a loan. Then slowly repay the loan back yourself over a period of time. It will also help with depreciation of the equipment when it comes time to do your taxes.
     
  8. kgcs

    kgcs LawnSite Senior Member
    Posts: 306

    Would I have to actually pay my self to transfer the equipment or could I do a Bill of Sale for the market value and sign it but not really transfer money?
     
  9. xclusive

    xclusive LawnSite Bronze Member
    Posts: 1,052

    You could but depending on the what program you use for your books it might mess things up. I would suggest trying to meet with an accountant to get the technical details.
     
  10. 8rickyj

    8rickyj LawnSite Member
    Posts: 76

    I still run my company as a DBA (doing buisness as) I have insurance but I am not currently having to deal with the headaches with taxes and things like that. I am going to hold out as long as I can till absolutely have too.
     

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